Tech stock to watch: Keysight Technologies Inc(NYSE:KEYS)

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Keysight Technologies Inc(NYSE: KEYS) opened positive this morning, rallying over 3.5% on December 7th, 2017 (As of   9:45AM EST; Source: Google finance) leading to a total rise of over 19% in this year to date.

The group’s overall orders enhanced 27% on a yoy basis to over $1 billion, with core orders rising 11%. They delivered a 20% revenue growth and generated a 20% operating margin and EPS of $0.71, which was $0.07 better than the midpoint of their guidance and $0.02 above the high-end.

Overall orders rose 15%, or 7% core growth while the group built a strong backlog as well. Order growth was strong across all geographies, with Europe, Japan and rest of Asia delivering a 6%, 11% and 7% growth. On the other hand, the core revenues fell 3% in the Americas.

Gross margin enhanced 440 basis points to 61.9% on a year-over-year basis boosted by favorable core product mix and the addition of Ixia. Communication Solutions Group or CSG revenue rose 10% against pcp boosted by R&D solutions for new technologies, including 5G, 4.9G LTE-Advanced, and Wi-Fi test. CSG also comprises aerospace, defense and government end markets, which generated revenue of $182 million in the fourth quarter from $188 million in pcp.

Total CSG revenue for the quarter was $462 million, or 4% growth was 62.9% gross margin and 21.3% operating margin. Our Electronic Industrial Solutions Group or EISG generated fourth-quarter revenue of $206 million, up 3% from last year. Automotive and energy led the growth, followed closely by general electronics measurement. EISG reported a gross margin of 61.3% and operating margin of 21.8%.

Ixia Solutions Group delivered a revenue of $124 million, while gross margin reached 76.2% and an operating margin of 16.4%. ISG witnessed a solid demand for their high-speed Ethernet test solutions, including 400 gig and strong orders for its security and application solutions. Services Solutions Group or SSG revenue enhanced 2% on a year-over-year basis to reach $110 million. Revenue growth for SSG was enhanced by sales for both calibration and remarketed solutions. This lead to a SSG revenue for the year to $419 million, which is a rise of 4% against last year. In the fourth quarter, SSG reported gross margin of 42.6% and operating margin of 16.3%.

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